Silgan's (SLGN) dispensing and specialty closures, or DSC, inflection, robust execution and favorable capital allocation strategy make it an attractive stock at current trading levels, RBC Capital Markets said in a Wednesday note.
The company's DSC segment is beginning to inflect positively, driven by its fragrance and healthcare portfolios, according to the note.
For H2, RBC said it expects the fragrance/beauty segment to record high-single-digit percentage growth on share gains, robust new product commercialization through 2027, and the full integration of Weener that is already delivering annual cost synergies.
Meanwhile, the pet food segment has been a consistent growth driver, the analysts said, adding that such segment is expected to continue growing at mid-single-digit percentage compound annual growth rate in 2027 and 2027.
RBC upgraded the company's stock rating to outperform from sector perform and increased its price target to $58 from $51.
Shares of the company rose more than 3% in recent trading activity.
Price: $41.97, Change: $+1.30, Percent Change: +3.20%